Finance Minister Nirmala Sitarman went to the Income Tax Bill, to withdraw 2025 after BJP MP Bajint Panda suggested some changes in the law on Friday.
The House approved the return of the bill amid a ruckus by opposition members.
“A new version of the Income Tax Bill, which includes most of the recommendations made by the selection committee headed by Mr. Bajyant Panda, will be introduced on Monday, August 11,” people said.
He said, “To avoid confusion by several versions of the bill and to provide a clear and updated version with all the changes involved, the new version of the Income Tax Bill will be introduced on Monday for the view of the House,” he said.
On July 21, on the first day of the current monsoon session of Parliament, the parliamentary panel report on the new Income Tax Bill was presented in the Lok Sabha. In its report, the panel has suggested significant changes to tighten the definitions, remove ambiguities and align new law with existing outlines.
The panel investigated the Income Tax Bill 2025, which tries to simplify the language and structure of the Income Tax Act 1961 and has submitted its report.
In its 4,584-hit report, the committee identified several draft reforms based on stakeholder suggestions, which they believe that they are essential for clarity and unclear interpretation of the new bill. The parliamentary panel has made a total of 566 suggestions/recommendations in its report.
To give significant relief to taxpayers, the committee has suggested to change the provision that prevents refunds when the income tax returns are filed beyond the due date.
Other recommendations of the committee include aligning the definition of micro and small enterprises with the MSME Act.
For non-profit organizations, the committee asked for clarification to remove the concept of ‘Income’ vs ‘receipts’, anonymous donations, and deemed application. The panel asked them to decide to avoid legal disputes.
The report recommended amendment of the bill for clarity on advanced ruling fees, TDs on future funds, reduced tax certificates and fine powers.
In the budget of July 2024, the government proposed a comprehensive review of the Income Tax Act of 1961. The objectives were to brief and clear the Act and reduce disputes and cases.
On February 13, 2025, the new Income Tax Bill in the Lok Sabha was kept in the Lok Sabha by Union Finance Minister Nirmala Sitarman. (Ani)
